XRP has the potential to clinch a $23.64 price target at a market cap of $1.29 trillion if it could record $500 million daily ETF inflows consistently for a year.
The XRP community has persistently pushed to see the launch of a spot-based XRP ETF in the United States market. These calls intensified amid the sustained discussions around spot Bitcoin ETF products, which launched last month.
Now, with the continued inflows into spot Bitcoin ETFs and the visible impact on Bitcoin’s price, conversations surrounding spot XRP ETF products have emerged. Professional game developer Chad Steingraber reignited these discussions amid a series of disclosures around crypto investment products.
Steingraber pointed out on Feb. 14 that XRP only recorded $500,000 inflows to its investment products over the course of four weeks, from Jan. 19 to Feb. 9. According to him, these reduced capital inflows are part of the reason XRP witnesses slow growth.
He compared XRP’s inflows to the capital flows recorded by Bitcoin, which totalled $1.089 billion over the seven-day period leading to Feb. 9. Bitcoin’s daily inflows have also been in the millions of dollars territory, bolstered by the recently-approved ETFs.
Steingraber emphasized that BlackRock’s iShares Bitcoin Trust (IBIT) alone recorded $500 million inflows on Feb. 13. This marked its largest daily inflow. The game designer presented a hypothetical scenario where XRP witnessed similar inflows daily.
XRP Could Hit $23 at $1.29T Market Cap
In a recent post, he expanded on the possible effects such inflows could have on XRP’s market cap. Notably, if XRP saw $500 million inflows, this would translate to an addition of $5 billion to its market cap using the Bank of America (BoA) multiplier, which sets a 1:10 ratio for capital inflows to market valuation.
Further expanding how this builds up:
$5Billion in 6 Days is #XRP current market cap ($30B)
21 Trading Days (Avg 1 Month) is $105Billion market cap
In one year, #XRP market cap would be…$1,56Trillion <—This is just ONE ASSET MANAGER https://t.co/DgMeSuRUE3
— Chad Steingraber (@ChadSteingraber) February 16, 2024
Should this level of inflows persist for six days, Steingraber stressed that it would result in XRP’s current valuation of $30 billion. Considering an average of 21 trading days every month, a $5 billion addition to XRP’s market cap daily would lead to an extra $105 billion valuation a month.
If the market sustains this for one full year, XRP would witness an extra $1.26 trillion market cap, mistakenly projected to be $1.56 trillion by Steingraber. Meanwhile, XRP currently has a market cap of $30 billion. An addition of $1.26 trillion would result in a market cap of $1.29 trillion.
In the event that XRP’s circulating supply of 54 billion tokens remains fairly stable within this one-year period, this $1.29 trillion market cap would translate to a price of $23.64. At XRP’s current price of $0.5579, the token would need to surge 4,137% to hit the $23.64 price.
However, the feasibility of the hypothetical scenario remains contested. Notably, this presentation spotlights the possible impact of spot-based XRP ETF products if they launched in the U.S. and commanded a similar demand to Bitcoin ETFs.
